Premium Essay

Porter and Coca Cola

In: Business and Management

Submitted By revbell
Words 883
Pages 4
Porter's Five Forces Model of Coca Cola
Bargaining Power of Suppliers
Most of the ingredients needed for beverages and snacks are basic commodities such as potatoes, flavor, color, caffeine sugar, packaging etc. So the producers of these commodities have no bargaining power over the pricing for this reason; the suppliers in this industry are weak.

Bargaining Power of Buyers
Buyers in this industry have the bargaining power, because main source of the revenue and market share in beverage and food industry are fast food fountain, convenience stores food stores vending etc. The profit margins in each of these segments noticeably demonstrate the buyer power and how special buyers pay diverse prices based on their power to bargain.

Threat of New Entrant
There are many factors that make it hard for new player to enter the beverage industry some of important factors are brand image and loyalty, advertising expense, bottling network, retail distribution fear of retaliation and global supply chain.

Brand Image / Loyalty
Pepsi and Coke continuously focusing on increasing their biggest beverage and food products, they has built some of the globe’s strongest brands that are loved by consumers throughout the world. Innovative Marketing has leveraged their worldwide brand-building strength to attach with consumers in significant ways and impel the growth globally. These all campaign results in higher amount of loyal customer’s and strong brand equity throughout the world. In 2011, Coca-cola was declared the world’s most valuable brand according to Interbrand’s best global brand. This makes it impossible for new entrance to enter the beverage industry easily.

Advertising Spend
Cock and Pepsi has very effective advertising campaign, their advertising also represent the cultures of different countries. They also sponsor different games and teams and also…...

Similar Documents

Premium Essay

Coca Cola

...Coca Cola was one of the Leading brand during 1970’s, made to exit due to foreign policies. After re-entering a hiatus of 16 years, Coco Cola has reached to each and every corner of India. Being one of the largest beverage companies in India, Coca Cola is now available through length and breadth of India. An Introduction to Coca Cola India:- Coca cola is a well-known American beverage giant, which sells concentrated soft drink worldwide. The journey for Coca cola begins when Pharma Scientist John Pemberton first formulated Coco Cola recipe in 1886 in Columbus, Georgia. Later in 1889, Coca Cola formula and brand was sold to Asa Candler who then incorporated the company Coca Cola in 1892. Rest is a history as the world knows. Coca Cola is now currently offers more than 500 products over 200 countries. Coca Cola has first opened its bottling plant in New Delhi in 1950 and existed in the market till 1977. India was not the easiest place to conquer for Coca Cola during 1970’s. Domestic brands such as Limca, Thums up were dominating brands in India at that time. By the time Coca Cola exited Indian Market in 1977, it was one of the leading soft drink brand. In 1977, when Morarji desai led Janata Party came into power, new foreign trade act called Foreign Exchange Regulation Act (FERA) was implemented. Under this regulation act, foreign companies were made to dilute its equity stake to its Indian counterparts if they wish to remain in the country. However has refused to...

Words: 1735 - Pages: 7

Premium Essay

Coca Cola

...duty is to mix Coca-Cola’s syrup (or concentrates) with carbonated water and sugar before selling it in glass or tin containers. These bottlers can be categorized in three groups taking into account their dependence from The Coca-Cola Company (hereafter simply referred as Coca-Cola). First, there are the independently owned bottlers, which accounted for 34% of Coca-Cola’s production in 1998. Second, 11% of Coca-Cola’s bottlers are owned and controlled. And then, there are those in which Coca-Cola has invested but still has no control (55% in 1998). Anchor Bottlers is the name given to some of these bottlers in which Coca-Cola has minority interests. They account for the majority of Coca-Cola’s sales (43%), justifying their special importance for the company. They tend to be large, geographically disperse and financially burly. There were 10 companies under this label, by 1999. This rooting of Coca-Cola’s business operations aims to make the most of its subsidiaries, by exploiting their efficiency in producing, delivering and marketing Coca-Cola’s products. Nonetheless, the level of control and ownership is carefully studied based on these bottlers’ financial health, resources available at the time of the investment, and the need to share ownerships with other important business allies. An example of an anchor bottler is Coca Cola Enterprises (hereafter referred as Enterprises). This corporation is responsible, today, for the production and distribution of Coca-Cola’s products...

Words: 1704 - Pages: 7

Premium Essay

Coca Cola

...22, 2014 VISHAL KUMAR | PGDM | February 22, 2014 COCA COLA AN INTEGRATED MARKETING COMMUNICATION PROJECT COCA COLA AN INTEGRATED MARKETING COMMUNICATION PROJECT CONTENTS: 1. INTRODUCTION ………………………………………………………………….2 2. HISTORY …………………………………………………………………………..3 3. COCA COLA IN INDIA……………………………………………………………7 4. MARKETING STRATEGY………………………………………………………..12 4. THE ADVERTISING CAMPAIGN………………………………………………..13 6. SERGIO ZYMAN…………………………………………………………………..17 7. COCA COLA’S RENOWNED ADS……………………………………...………..21 8. BOLLYWOOD ACTORS IN ADS…...…………………………………………….27 9. THANDA MATLAB COCA COLA………………………………………………..28 10. COKE’S AD AGENCIES IN INDIA………………………………………………29 11. THE STORY BEHIND ITS SMALL WORLD MACHINES AD…………………30 12. CONCLUSION……………………………………………………………………..32 13. BIBLIOGRAPHY…………………………………………………………………..33 “I don’t care about making award-winning commercial. The only thing …that any marketing person should care about is real consumption.”-Sergio Zyman, The end of marketing as we know it,1999 INTRODUCTION: Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines throughout the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs......

Words: 7568 - Pages: 31

Free Essay

Porter Five Courses of Coca Cola

...kullanıcıyı datalarına eklemişti.Önümüzdeki aylarda mobil uygulamalara yönelik yeni promosyon çalışmalarının olacağını belirten Schultz, mobilden gelen gelirlerin dijital kartlar adına iyi bir skala ve sinerji olduğunu söylemekle birlikte, bu durumdan ABD’den sonra global pazarın da etkileneceğini ekledi Sertifikalı Organik Kahve Organik kahve, çevreye az etkisi olan yöntem ve malzemeler kullanılarak yetiştirilir. Organik çiftçilik uygulamaları, toprak sağlığının yenilenmesine ve korunmasına, zehirli ve kalıcı böcek ilaçları ve gübrelerin kullanımının azaltılmasına ve biyolojik çeşitliliği destekleyen tarımcılığın uygulanmasına yardımcı olur.Starbucks 2009 mali yılında 6,4 milyon kilogram sertifikalı organik kahve satın aldı. MİCHAEL PORTER 5 GÜÇ ANALİZİ-STARBUCK’S 1. Firmaların kendi aralarındaki rekabet: Starbucks'ın en büyük rakibi ABD'li Caribou Coffee, Ülker'in kahve zinciri Cafe Crown'u satın aldı. Türkiye'nin önde gelen gruplarından Ülker, alışverişte. Geçen günlerde Şok'u 600 milyon liraya satın alarak discount (indirimli market) sektörüne adım atan Ülker, bünyesindeki kafe zinciri Cafe Crown'u ise dünyada Starbucks'un en büyük rakibi Caribou Coffee'ye sattı. Başarılı markaları satın alması ile ünlü Ülker'in Cafe Crown'u elden çıkaracağı uzun bir süredir sektörde konuşuluyordu. 16 ülkede 415 şubesi var Radikal gazetesinin haberine göre; 2003 yılında Yıldız Holding bünyesinde kurulan Cafe Crown'un 7 farklı şehirde 28 şubesi bulunuyor. Şubelerin yarısı......

Words: 2660 - Pages: 11

Premium Essay

Coca Cola

...The Coca-Cola Company Struggles with Ethical Crises 1. Delineate the ethical issues and dilemmas (as found in Chapter 3) the company faced. In 1999 Coca-Cola started to encounter its first taste of ethical issues and all the baggage that is associated with it. One of the first challenges that Coca-Cola was confronted with was an environmental problem in some of its foreign markets which lead to health issues. After drinking some Coca-Cola products, around thirty two children in Belgian became ill. Once Coca-Cola ascertained that problem was derived from an inferior batch of carbon dioxide. For whatever reasons, Coca-Cola assumed this wasn’t a real health hazard and procrastinated on mentioning the issue. Coca-Cola would pay a heavy price because once the media learned of the problem; they chastised them for their slow reaction. The negative news became damaging to the Coca-Cola reputation. To make matters worse for Coca-Cola, France claimed that in excess of a hundred people became ill after consuming their products and the country banned all the Coca-Cola products until they could prove that the problem was solved. In Poland, Coca-Cola introduced a new product called Bonaqua. Unfortunately the Bonaqua arrived in Poland infected with mold. In essence, Coca-Cola’s reputation became tarnished because of its slow response time and failure to address the health risk associated with each situation. Also in the spring of 1999 Coca-Cola was faced with a massive......

Words: 1605 - Pages: 7

Premium Essay

Coca Cola

...Running Head: COCA-COLA THE COMPANY 1 Coca-Cola International Business Demond Adams and Jockey Watkins September 23, 2014 Park University COCA-COLA THE COMPANY 2 Coca-Cola’s Mission, Vision, and Standards Our Mission: Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world...To inspire moments of optimism and happiness...To create value and make a difference. Our Vision Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving......

Words: 1547 - Pages: 7

Premium Essay

Coca Cola

... ITGD4105.101 Information Technology Planning And Management Prepared by Reem Haroun -120050334 Soher Al-Mursheidi-120080089 Manar abd elrahman -120080113 Supervised By Miss. Yasmin AL Bobo Plan Contents Abstract ……………………………………………4 Introduction ………………………………………..6 Coca-Cola Background ……………………………8 Methodology ………………………………………10 Management Overview……………………………11 Purpose………………………………….11 HISTORY………………………………….11 High-Level Business Direction…………………..12 Mission…………………………………..12 Vision……………………………………13 Values……………………………………13 SWOT Analysis of Coca-Cola…………………14 Strengths………………………………..14 Weaknesses…………………………….16 Opportunities………………………….18 Threats………………………………..20 Objectives ………………………………………..21 Selecting Target Market………………………….22 Developing the Marketing Mix…………………..23 ...

Words: 8429 - Pages: 34

Premium Essay

Coca Cola

...INTRODUCTION The invention of coca-cola originally started as coca-wine by John Pemberton in 1885. After the reinvention of coke’s identity into a refreshment, it began being sold in bottles for the first time in 1894. Coca Cola has always portrayed itself as a company based on unwavering values, morals, and goals. They offer world class quality of sparkling and still beverages, from coca-cola extending to 400 soft drinks, juices, teas, coffees, waters, sports and energy drinks that refresh, hydrate, nourish, relax, and energize. The Coca Cola Company and has become a Coca-Colonization. The world of Coca Cola is ever spreading in more than 200 countries around the globe. Drinking Coca Cola has always been a trend and a life-style. The company’s publicity and communications with their customers and employees have always been of utmost clarity, honesty, and candor. The various campaigns carried out over the years, have only become better and ever more powerful as an influence. However, when a crisis as big as the one that hit Coca Cola in Belgium in 1999 takes a company by surprise, no matter how big it is, no crisis management team can be prepared for a problem of this magnitude. II. CRISIS HITS COKE According to an article written in Junk Science (July 3rd 1999) 33 children from one school suffered from symptoms of nausea, headache, fatigue, palpitations, abdominal discomfort, and malaise after having drunk bottled Coca-Cola on June 8th, 1999. They were......

Words: 1126 - Pages: 5

Premium Essay

Coca-Cola

...Running head: THE COCA-COLA COMPANY The Coca-Cola Company 1 Running head: THE COCA-COLA COMPANY 2 The Coca-Cola Company: History and Strategy The Coca-Cola Company is one of the oldest and largest beverage companies in the world. Its success has primarily been due to its ability to evolve along with consumer demands and markets. Through its failures and successes, Coke has become one of the most successful and most recognized brands in the world. History of Soft Drinks Relative to the history of the world, soft drinks are relatively new and have become one of the largest industries in the world. The term “soft drink” refers virtually to any drink that is not hard liquor and people of desire to drink natural carbonated water since the time of the Romans. Carbonated water had always been related to health through mineral baths and thus created the notion that if it was good to soak in it, then it must be better to drink it. By the end of the 1700s, scientists had discovered how to take carbon dioxide, infuse it into plain water, and create bottled carbonated water. It did not take long before people desired this health drink to be flavored and in the late 1700s citric acid was added from lemon juice that open the gate for the creation of carbonated lemonade in England. By the mid and late 1800s, popular soft drinks such as ginger ale and root beer were sold on the market as health elixirs much like today’s sports drinks. A pharmacist named......

Words: 3099 - Pages: 13

Premium Essay

Coca Cola

...The Coca-Cola Project Role of e-commerce Coca Cola Co uses business to business or B2B. Electronic commerce has fast become a preferred method of doing business for the grocery industry. Major retailers have seen the rewards of enhanced supply chain efficiency and increased business automation. As a result, more major consumer goods companies are starting to use the Internet to do business with retailers. Therefore, Coca Cola being an important SUPPLIER, needs to provide its customers with a fast and reliable way to take purchase orders. Internet has made it possible for Coca-Cola Company to build a strong relationship with its bottling partners. Although in most cases they operate as two independent companies, internet makes it easier for them to interact with each other. The Coca-Cola Company’s business is focused on creating and marketing their brands and trademarks, while Coca-Cola bottling companies produce and package the finished beverage products and then sell and distribute them to our retail and WHOLESALE customers Coca-Cola Company's work together with more than 300 bottling partners globally and operate the most extensive beverage distribution system in the world. This Coca-Cola system owns, leases or operates more than 800 plants around the world. Coca-Cola's bottling partners range from international and publicly TRADED businesses to small, family-owned operations. Their governance and management structures are separate from those of The Coca-Cola Company.......

Words: 3920 - Pages: 16

Premium Essay

Coca Cola

...Diligence Report The Coca-Cola Company AC 600 Professor: John Kocikowski Keller Graduate School of Management 10/30/2011 Table of Contents Industry Overview 3 Corporate Overview 5 Organization and General Corporate Issues 6 Treasury 8 References 14 Executive Summary The diversity at the Coca-Cola Company is evident with their presence in more than 200 counties. They feel that they are empowered within their business structure as well as the communities they serve because of their differences. Their attribute their success to their consistent values. They understand that their future growth is dependent upon their ability to develop a worldwide team that is rich in its diversity of people, cultures and ideas. Knowing that diversity is not limited to the internal structure of an organization, Coca-Cola has used this same approach regarding their suppliers. Through their supplier diversity program they are building relationships with minority and women owned businesses by giving them equal access to procurement opportunities. Coca-Cola plays a major player in its industry, not only in the U.S, but also all over the globe. Coke is single handedly the most popular soft drink anywhere, beating out its competition, Pepsi Co. Overseas, Coke has established its empire from South America to Africa to all of Asia and Europe. Coke is the world's top soft-drink company. The Coca-Cola Company owns four of the top five soft-drink brands (Coca-Cola, Diet......

Words: 13320 - Pages: 54

Premium Essay

Coca Cola

...not have been completed and compiled. They have worked very hard on this with me. PREFACE The study mainly focuses on how Coca Cola has performed over the past years internationally and especially in Pakistan. The main purpose of this project is to teach us as to how Coca-Cola has done over the many decades since its beginning, what problems its faces and what recommendations are possible from my research analysis. The scope of the project is to discuss the marketing strategies adopted and applied by ‘Coca Cola’, Pakistan. The primary concern is how and what type of advertising tools and techniques Coca-Cola has used throughout the years since this company bases its sales on advertising and placement. The primary purpose of the report is to find out which company is leading the market i.e what are the market shares of the beverage companies and what are the tactics used by the leader which makes them able to control and influence the market. My purpose was also to share maximum information about the products of Cola Cola that are now glued to our daily life consumptions. I have gathered a sound knowledge over the matter and have found this study to be extremely useful to me in my learning experience. Kinnaird Postgraduate Programs 93, Jail Road Lahore 54000 Pakistan Telephone 042-7569536 April 14, 2011 Coca Cola Beverages Pakistan Limited Lahore Subject: Research Work for Final Dissertation Dear Sir/Madam, The Bachelor in......

Words: 22254 - Pages: 90

Premium Essay

Coca Cola

...CONTENT PAGE 1. INTRODUCTION..................................................................................................3 1. Information System: An Overview............................................................3-4 2. Brief history of Coca-Cola.........................................................................4-5 2. Analysis of Internal and External Forces............................................................5 1. The Coca-Cola SWOT Analysis...................................................................5-7 1. Internal Forces.......................................................................................8-9 2. External Forces.....................................................................................9-10 3. Information System Incorporated.....................................................................11 1. Value of Information System......................................................................12 1. Value Chain Analysis...........................................................................12-13 2. Competitive Advantage..............................................................................14 4. CONCLUSION....................................................................................................15 5. REFERENCES..............................................................

Words: 4111 - Pages: 17

Premium Essay

Coca Cola

...The History of Coca-Cola A local pharmacist by the name of Dr. John Stith Pemberton invented the Syrup for Coca-Cola on May 8, 1886 in Atlanta, GA. This syrup was first put on the market when he carried the product to Jacobs pharmacy located down the street where it was pronounced “excellent”. It was then placed on sale as a soda fountain drink for five cents a glass. Later adding carbonated water with the syrup it was then that the drink became known as “Delicious and Refreshing”. A slogan that continues to live on today. The first advertisement was posted in the Atlanta Journal inviting citizens to try “the new and popular soda fountain drink”. Never realizing the potential of the new beverage, Dr. Pemberton gradually sold portions of his business to various partners. Prior to his death, in 1888, he sold the remaining portions of Coca-Cola to Asa G. Candler. Candler, a native of Atlanta with a great business acumen, continued to buy additional rights and acquire complete control. Proclaiming his control in the Atlanta Journal on May 1, 1889. by 1892 Candler formed a Georgia Corporation known as The Coca- Cola Company, which had an initial capitalization of about $100,000. On January 31, 1893 the “Coca-Cola” trademark was registered in the United States Patent Office. Coca-Cola has been a very successful business since its invention as we have found. It has now become a symbol of friendship and a Global Business. This product can be found in just about every...

Words: 1318 - Pages: 6

Premium Essay

Coca Cola

...important emerging issue in the design of work? Coca Cola is one the biggest soft drink company in the world. Employees find their employment to be pleasantly fresh and different I think the emerging issue is very important in the design of work and what its probably the company. In any successful company, motivation, job satisfaction, commitment to an organization are the most important factor. To make employee motivated, money is the main factor, as well as from a job design perspective these employees find their job to be stimulating, interesting, and money for services. The important emerging issue in the design of work is find honest, skilled and motivated workers. In Coca Cola company, motivation come from inside an individual rather then from any external or outside rewards. Coca cola company statement is “refresh the world and happiness and to inspire moments”. Financial encouragement help the employees be motivated to do their job sufficient. Organizational design for the coca cola organization is that the customers are always first and company take care their employees really really good. The company goal is to make customer happy and expect to have smart workers. Managers at the company have regular meetings with company workers about their problems, new ideas and how they can improve company. Its interesting and thrilling to work for Coca Cola company, that work hard and rewards you all at the same time. Coca cola company job design involves chemistry of......

Words: 851 - Pages: 4